| The Commercial Loan Restructuring Process | | | | loan restructuring firm to review the mortgage |
| Commercial loan restructuring is today's answer for | | | | documents and the financial condition of the business |
| commercial property owners saddled with yesterday's | | | | (or property) to determine if a modification is feasible. |
| miscalculations. When faced with the prospect of | | | | The next step of the process is putting together a |
| foreclosure it can, more often than not, be the best | | | | comprehensive and cohesive business plan that |
| solution. But, the process is rigorous, labor intensive and | | | | actually will enable the property owner to get his |
| requires people with the tenacity, skill and experience | | | | business back in order while alleviating him of untenable |
| to deal with banks, lawyers and all sorts or real estate | | | | mortgage payments. This step should be strictly be left |
| professionals. In short, if you are a commercial | | | | up to experienced professionals to put together. |
| property owner in the pre-foreclosure stage, or know | | | | Usually this process is done by a team comprised of |
| you are heading into turbulent times, your best bet is to | | | | MBA's, Attorneys and Real Estate Professionals. |
| seek out a professional loan restructuring firm a | | | | Once the property owner and commercial mortgage |
| (commercial loan mitigation firm) and find out what they | | | | restructuring firm are in accord on the business plan, |
| can offer you. While there are costs involved to hire | | | | the next step is presenting it properly to the lender. |
| such a firm, typically the benefits of using one far | | | | After the property owner's dilemma and it's proposed |
| outweigh the costs incurred. | | | | solution has been communicated to the lender (bank), |
| The goal of a restructure is to change the terms of | | | | the lender (special servicer) will review the proposal |
| the original agreement to terms that lend themselves | | | | and based on the property owner's current financial |
| to the property owner's ultimate success with his | | | | situation, payment record and other factors, will decide |
| investment property venture. This is accomplished | | | | whether to proceed with a modification or turn down |
| through careful negotiations, meticulous business | | | | the proposal. |
| planning and a comprehensive, precise presentation | | | | Commercial loan modification professionals will give |
| package. If done correctly, the lender will be persuaded | | | | advice and act as facilitators or negotiators for the |
| to grant the property owner a reduction of the | | | | borrower during the process. The best loan |
| outstanding balance, lowered interest rates, loan | | | | restructuring firms typically will do all the work and |
| extensions or other modifications. | | | | negotiation while communicating what is happening to |
| The property owner is advised to hire a commercial | | | | the property owner through each step of the process. |